31 Jul 2018 07:00
31 July 2018
Eland Oil & Gas PLC
("Eland" or the "Company")
Commencement of Ubima Appraisal
Eland Oil & Gas PLC (AIM: ELA), an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, through its subsidiary Wester Ord Oil & Gas Nigeria Limited, partnered with All Grace Energy Limited, is delighted to confirm that the appraisal of Ubima field has commenced with the Deutag T-57 land rig re-entering the Ubima-1 well which has been suspended since discovery by SPDC in 1963. The Company has a 40% equity interest in the Ubima field.
A dual string completion is planned for Ubima-1 on four different reservoirs, namely on the D1000 (at 4,908 feet subsea ("ftss")), E1000/E2000 (at 6,778 ftss) and F7000 (at 9,244 ftss). The programme includes two Drill Stem Tests (DST's) on the E1000/ E2000 and D1000 prior to running the dual completion with the objective to obtain accurate fluid, pressure and production data for each separate reservoir. Thereafter extended production testing is planned, which will serve as a solid basis for the full field development plan of the Ubima field.
A CPR published in April 2016 by AGR TRACS ascribes gross 2P reserves of 2.4 million barrels of oil to the Ubima-1 well. On a full field development basis, the CPR carries gross contingent resources of 20.6 million barrels (1C), 31.1 million barrels (2C) and 66.0 million barrels (3C).
Ubima-1 represents Eland's diversification of production outside OML 40. It opens a new operational leg in Rivers State, Nigeria, with ultimately different export routes than those from the Opuama field. The Company expects that upon successful appraisal the Ubima partnership will convert a significant amount of contingent resources into recoverable reserves.
George Maxwell, CEO of Eland, commented:
"We are delighted to re-enter Ubima-1 and commence completion and testing operations. As we look to geographically diversify our production base, Ubima is an exciting project for Eland and this is the first step in the appraisal of the field ahead of commencing full field development as early as possible. Following the appraisal of Ubima-1, we look forward to updating all stakeholders on the progress of this exciting asset."
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
www.elandoilandgas.com
George Maxwell, CEO
Ronald Bain, CFO
Finlay Thomson, IR
Canaccord Genuity Limited (+44 (0)20 7523 8000)
Henry Fitzgerald O'Connor / James Asensio
Panmure Gordon (UK) Limited (+44 (0)20 7886 2500)
Adam James / Atholl Tweedie
James Stearns
Camarco (+44 (0) 203 757 4980)
Billy Clegg / Georgia Edmonds / Tom Huddart
In accordance with the guidelines of the AIM Market of the London Stock Exchange, Gilles Krijger, MSc of Delft University, with 40 years of experience in the oil and gas sector, is a Reservoir Engineer and member of the Society of Petroleum Engineers who meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.
Notes to editors:
Eland Oil & Gas is an AIM-listed independent oil and gas company focused on production and development in West Africa, particularly the highly prolific Niger Delta region of Nigeria.
Through its joint venture company Elcrest, Eland's core asset is a 45% interest in OML 40 which is in the Northwest Niger Delta approximately 75km northwest of Warri and has an area of 498km².
In addition, the Company has a 40% interest in the Ubima Field, onshore Niger Delta, in the northern part of Rivers State.
The OML 40 licence holds gross 2P reserves of 83.4 mmbbls, gross 2C contingent resources of 40.4 mmbbls and a best estimate of 254.5 mmbbls of gross un-risked prospective resources*
The Ubima field holds gross 2P reserves of 2.4 mmbbls of oil and gross 2C resource estimates of 31.1 mmbbl**
Net production figures relate to Elcrest Exploration and Production Nigeria Ltd ("Elcrest"), Eland's joint venture company. Production rates, when oil is exported via Forcados, are as measured at the Opuama PD meter, are subject to reconciliation and will differ from sales volumes.
*Netherland, Sewell & Associates Inc CPR report 31 December 2017
**AGR TRACS April 2016